W4 Video games has raised $18 million in a Collection B funding spherical led by Tencent and has signed an settlement with the Chinese language large to scale and bolster the Godot ecosystem in Asia.
This brings the whole quantity the corporate has raised to $33 million; along with Tencent, OSS Capital, LUX, Naval Ravikant and Tobias Lutke’s household workplace additionally contributed to this newest spherical of funding.
W4 Video games was arrange in 2022 by the founders of the open-source Godot engine to offer business providers to builders utilizing the tech, together with console porting. Godot itself has seen large development in recent times; W4 cites SteamDB data showing that the number of Steam games using the engine rose by over 50% in 2024 and 2025. To this point in 2026, 1,262 titles utilizing Godot have been launched on the platform.
“Over the previous few years, Godot has emerged as one of many world’s fastest-growing recreation engine applied sciences, with W4 Video games on the forefront of its adoption by main studios and enterprises,” Godot engine creator and W4 Video games founder Juan Linietsky mentioned in a press launch in regards to the deal. “We’re excited to work with Tencent to construct on the momentum and additional set up Godot Engine as a number one platform for corporations creating the subsequent technology of video video games.”
Talking to GamesIndustry.biz, W4 Video games co-CEO Nicola Farronato provides: “We’re experiencing an acceleration. We have now been constructing the foundations over the past 5 years, which have actually helped Godot attain its inflexion level. We’re primarily equipping ourselves to serve enterprise demand and preserve making Godot extra compelling for greater tasks. That may vary from gaming to the XR world, to particular niches, like multiplayer, and extra subtle customers or tremendous customers to begin adopting it.”
A part of the $18 million funding goes in the direction of increasing W4 Video games’ worldwide workforce. The corporate says that its headcount will improve by 50%. W4 is simply about 30 individuals in whole, with employees working remote-first throughout “round 20 cities” globally.
“Increasing in the direction of Asia will imply hiring new roles additionally over there,” Farronato says. “We plan so as to add ten-to-15 full time staff within the subsequent 12 months. The thought is to be as capital environment friendly as attainable; we wish to develop with income development and the chance to begin this course of by making a multi-year strategic plan to go to market.”
Farronato says Asia is a “fast-growing market” for each Godot and W4; the latter apparently had curiosity from different corporations, however selected to work with Tencent due to the megacorporation’s large ecosystem in Asia.
“It is not solely in regards to the cash,” Farronato continues. “It is about being actually keen to develop strategic actions collectively. And we could not be extra excited to begin this journey. If you concentrate on going to market in Asia alone, even if in case you have raised a number of million, it isn’t sufficient to attempt to make it. Partnering with a nationwide strategic investor is paramount in case you actually wish to go that route by way of markets.”
Taking a look at Godot and W4’s current presence in Asia, Farronato says China and Japan are the area’s “most mature” markets. W4 already works with Chinese language indie writer Indieark, for instance, in addition to with Japanese agency eSol to create industrial and enterprise environments utilizing Godot.
“There are consumer teams there,” he explains. “They’re the second-largest markets on this planet by way of Godot energetic customers, following the USA. There is superb localisation already in Godot, so all these international locations are lined.”
Requested what W4 Video games’ long-term plan or purpose is, Farronato has large desires for each his firm and Godot.
“We wish to grow to be one of many high three corporations on this area at a worldwide scale,” he says. “And we wish Godot to grow to be the largest recreation engine by way of market share. Should you examine now, there’s nonetheless a spot to slim between primarily Unity and Godot. It is clear that the ambition is to maintain on constructing, carry on making the product higher and grow to be the largest general-purpose recreation engine.”
To search out out extra about Godot and whether or not the open-source engine is best for you, check out our GamesIndustry.biz Academy article on the tech.